Succession Planning for Success

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There are compelling statistics about the scale of the succession planning challenge facing small business in Australia over the next 20 years. Here are a few facts based on an RMIT University survey carried out several years ago.

Small business in Australia comprises 97% of all businesses.

- Asset Value = $4.3 trillion

- Employs 40% of Australian workforce

Average owners age = 55 years.

Retiring in the next 10 years = 81%.

Estimated business sales = $3.5 trillion.

Owners with no exit plans = 75%

Why should you have a succession plan?

Whilst many small business people are continuing to enjoy success in their businesses in their 50’s, 60’s and even 70’s there is an inevitable fact that every owner will exit. By being prepared the small business owner will:

Enhance the Continuity of their business

Help unlock the Value of the business

Maximise the Business Value

In short a planned approach will increase the chances of achieving your personal, business and financial goals.

What are the key steps in developing a succession plan?

Once you have decided that a succession plan makes sense for you there are a number of important steps including: